It is critical that the
equipment inventory system of the Austin Community College District (“ACC” or
“the College”) provides control and accountability over capitalized equipment
and other assets, and that it gathers and maintains information needed for the
preparation of financial statements.

Administrative Rule

Physical equipment
inventories will be performed in accordance with Generally Accepted Accounting
Principles (GAAP).

Definitions

Fixed assets are defined
as items that are tangible in nature, have a useful life of more than one year
and are reasonably identifiable and controllable. They may include land,
buildings, machinery, furniture and other equipment that are held or used over a
period of time more than one year.

Equipment is a general
term referring to fixed assets that are not land or buildings. Land and
buildings are referred to as real property. Equipment includes machinery,
furniture, instructional equipment, and other such fixed assets.

Capitalized fixed assets
are those fixed assets having an acquisition cost over an established threshold
dollar amount and are recorded in the financial records as such. The College
has established capitalization thresholds of $5,000 for equipment and $100,000
for real property.

Responsibilities

The Executive Vice
President for Finance and Administration will ensure that a system of internal
controls is maintained for safeguarding equipment of the College. The system
will provide for adequate identification of these assets, properly recording the
assets in the college accounting system and timely reconciling the two systems.

To enhance this process,
Business Services will conduct physical equipment inventories. The College’s
equipment inventory will include both capitalized equipment and all equipment
with an acquisition cost from $500 - $4,999.99.

All organizational units
at each college site will appoint a property custodian for the purpose of
safeguarding and tracking the equipment under their control. Property
custodians will use the Property Management Form for reportingorrequestingproperty/equipment movements, updates of status codes, and
dispositions such as lost, stolen, damaged, traded, salvaged, cannibalized or
destroyed.

The ACC Foundation will
maintain a system for the proper processingof assets donated to the college. All assets donated to the College
must be processed through the ACC Foundation using their prescribed process and
form.